Standard Chartered Q1 2025 profit after tax declines by 13.5% to Ksh. 4.86B

Standard Chartered Bank Kenya has announced that it has reported in profit after tax at Ksh. 4.86 billion for the first quarter of 2025. This is a 13.5% decline in profit after tax after reporting Ksh. 5.61 billion during the same period in 2024.

The primary driver for the profit reduction was a significant 59.1% plunge in forex trading income, which negatively impacted overall non-interest revenue. Total operating income consequently fell by 11.2% to Ksh. 11.60 billion, reversing the double digit growth over the past two years.

While net interest income remained relatively steady at Ksh. 8.21 billion, slipping just 0.8% year-on-year, non-interest income sharply decreased to Ksh. 3.39 billion from Ksh. 4.79 billion in Q1 2024.

In addition to reduced trading income, Standard Chartered Bank Kenya experienced a contraction in its net loan book (down 10.2%) and customer deposits (down 6.8%). This suggests a more cautious approach to credit deployment and evolving funding dynamics.

The capital adequacy ratio rose to 20.63%, well above the minimum requirement of 14.5%, and liquidity improved to 73.64%, indicating a healthy cushion against near-term uncertainties.

Furthermore, loan loss provisions declined to Ksh. 0.41 billion, down from Ksh. 0.79 billion last year, reflecting stable asset quality. Operating expenses also saw a decrease to Ksh. 4.95 billion from Ksh. 5.42 billion in the prior year, contributing to mitigating the profit decline.

Standard Chartered Bank key metrics – Q1 2025 vs Q1 2024